Google doubles down on Q2 profit
Investors not moved
The time when Google doubling profits year-over-year impressed investors has passed. The ad broker-cum-search engine today reported a surge in second quarter profits to $721m from $343m in the same period last year. As a reward, investors sent Google's shares higher a paltry one per cent in the after-hours markets.
But it's not all ho-hummery in hypeville. Even those with the highest of expectations have to be impressed with Google 77 per cent rise in second quarter revenue to $2.46bn. "Google grew at an impressive pace during a seasonally slower quarter," said Eric Schmidt, Google's CEO. "We continue to deliver valuable new products and services to users around the world through our partnerships and investments in our business. Our strong performance results from our clear focus on increasing the quality of user experience, particularly in search and ads."
To reach its impressive revenue total, Google did have to shell out $785m in traffic acquisition costs (TAC), which amounts to 32 per cent of revenue. In the same quarter last year, Google reported TAC of $494m or 36 per cent of revenue.
Google exited the quarter with $9.8bn in cash, leaving it with plenty of money to buy colored balls for its 8,000 staff. ®